NYSE$CBT

Cabot Corporation · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Cabot delivered solid fourth quarter results with year over year increases across all segments.

Cabot Corporation reported solid fourth quarter results with year over year increases across all segments. The company's Battery Materials revenue doubled year over year and fiscal 2021 financial results were in line with expectations. Liquidity remained strong at approximately $1.3 billion, with a Net Debt to EBITDA ratio of 1.6 times as of September 30, 2021.

  • Delivered record Adjusted EPS in fiscal 2021, with significant year over year growth across the segments.
  • Reinforcement Materials led the way delivering an increase in EBIT of $167 million while Performance Chemicals also recorded strong results across all major product lines with an increase in segment EBIT of $93 million.
  • Delivered 63% growth year over year in Adjusted EPS from higher volumes and improved margins.
  • Record fiscal 2021 financial performance demonstrates the strength of our businesses and successful execution of our corporate strategy

Headline financials

Total Revenue

$904M

Previous: $659M+37.2%
EPS (adj)

$1.11

Previous: $0.68+63.2%
Capital Expenditures

$80M

Previous: $38M+110.5%
Free Cash Flow

$20M

Previous: $61M-67.2%
Net Income

$29M

Previous: -$272M+110.7%
Operating Income

$74M

Previous: -$70M+205.7%
Gross Profit

$178M

Previous: $137M+29.9%
Cash & Equivalents

$168M

Previous: $151M+11.3%
Total Assets

$3.31B

Previous: $2.78B+18.9%
Stock-Based Comp

$5M

Previous: $4M+25.0%

Revenue & EPS history

Cabot · Revenue · Quarterly

$904M

Q4 2021+37.2%vs Q4 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Cabot · $777M total across 2 segments · Q4 2021

  • Reinforcement Materials
    $493M+51.7%
  • Performance Chemicals
    $284M+25.7%

Forward guidance

Looking forward to fiscal 2022, the company believes robust end-market demand will continue and the benefits from their growth investments will support another year of strong results. Consistent with this outlook, they expect fiscal year 2022 adjusted earnings per share to be in the range of $5.20 to $5.60.

Tailwinds

  • Expect to benefit from higher volumes driven by strong forecasted levels of tire production.
  • Expect higher pricing in calendar year 2022 customer agreements as customers are placing a premium on supply security.
  • Anticipate continued demand growth across our broad set of applications
  • Anticipate particular strength in battery materials and inkjet packaging.
  • Remain focused on generating strong discretionary free cash flow and returning cash to shareholders.

Headwinds

  • Rising input costs
  • Global supply chain disruptions
  • Semi-conductor chip shortage
  • External challenges are likely to remain in the short-term
  • External challenges will moderate as we move through the fiscal year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2021

Historical avgQ4 2021

+1.0%

Avg return

Earnings day

+2.0%

Avg return

5 days after

+2.9%

Avg return

30 days after

60%

41 / 68 earnings

Positive

+13.5%

Q4 2015

Best reaction

-13.4%

Q1 2013

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+4.1%+7.0%+2.4%
Q1 2026+10.3%+4.6%-1.8%
Q4 2025-7.0%-6.7%-2.7%
Q2 2025-6.8%-4.6%-3.3%
Q1 2025+3.9%+1.6%-0.9%
Q4 2024-0.1%+5.5%-1.3%
Q3 2024+12.6%+6.9%+12.6%
Q2 2024+7.4%+8.3%+4.6%
Q1 2024+5.8%+10.1%+18.3%
Q4 2023+5.7%+9.6%+13.6%
Q3 2023+1.9%+3.2%+4.4%
Q2 2023-4.5%-3.1%+6.2%
Q1 2023+1.1%+7.2%+1.4%
Q4 2022-7.1%-2.1%-5.3%
Q3 2022-2.3%+6.0%-1.8%
Q2 2022+5.6%+1.7%+12.5%
Q1 2022+11.8%+12.3%+31.7%
Q4 2021-1.3%-0.0%-3.2%
Q3 2021+0.2%+2.4%-4.8%
Q2 2021+4.6%+13.6%+16.4%
Q1 2021+5.4%+7.8%+13.6%
Q4 2020+7.2%+4.3%+6.1%
Q3 2020+0.1%+5.7%-0.1%
Q2 2020-9.3%-10.4%+21.8%
Q1 2020+5.8%+5.1%-3.5%
Q4 2019+8.7%+9.4%+0.6%
Q3 2019-5.7%-7.7%-3.4%
Q2 2019+0.5%-0.8%-6.5%
Q1 2019-9.7%-11.0%-3.9%
Q4 2018-3.9%-4.2%-7.9%
Q3 2018-4.4%-3.4%-4.4%
Q2 2018+6.5%+9.2%+14.0%
Q1 2018+6.5%-0.9%-3.5%
Q4 2017+5.2%+6.3%+1.8%
Q3 2017-2.9%-3.1%-3.0%
Q2 2017-6.6%-10.3%-13.2%
Q1 2017+4.1%+3.8%+5.5%
Q4 2016-3.1%-7.3%-2.1%
Q3 2016+5.6%+0.7%+2.7%
Q2 2016-8.0%
Q1 2016-1.1%
Q4 2015+13.5%
Q3 2015-1.1%
Q2 2015-7.4%
Q1 2015+4.7%
Q4 2014-4.1%
Q3 2014-5.4%
Q2 2014+1.3%
Q1 2014+0.5%
Q4 2013+2.0%
Q3 2013-2.5%
Q2 2013-2.3%
Q1 2013-13.4%
Q4 2012+1.2%
Q3 2012-5.4%
Q2 2012+3.5%
Q1 2012+13.5%
Q4 2011+9.3%
Q4 2010+2.1%
Q3 2011+2.1%
Q2 2011-0.4%
Q1 2010-0.0%
Q1 2011+2.5%
Q4 2008+2.9%
Q2 2010+2.9%
Q3 2009+0.1%
Q4 2009+0.1%
Q3 2010+0.1%

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